Re-hab Project - Need some advice

[Kimberly Hodgkins]

I am part-owner of a construction company in Oregon, so we will be doing this project ourselves. Made an offer on a property that needs a full re-hab. Purchase price is $90k. ARV is approx. $310k. Seeking loan amount for approx. $200k. I have been actively searching for investors and private money for weeks. There seems to be a lack of lenders in Oregon. What I have found is up to 18% rate, that's seems so high to me and that's with providing income documents and $10k down. I am supposed to close at the end of the month and would welcome any suggestions on where to look for more private money investors.

[Anthony Peric]

Hard money/Private lenders typically do a 65% LTV on the subject property. Most don't lend on ARV unless you have construction funds you are willing to put into escrow for the rehab. They will want more than $10K skin in the game.

You should put together a financial overview of all of your assets (liquid and property + business, cars, etc.) and approach a couple of these lenders in this post:

http://www.biggerpockets.com/hardmoneylenders/oregon

It would be wise to get together a Personal Financial Statement with all supporting documents (bank statements, notes, FF&E, etc) ahead of time before approaching any more lenders. Download one from here [PDF] http://www.hrdc.org/html/HRFC/HRFC_documents/Personal_Financial_Statement.pdf